Retirement Interest Only Mortgage – Who Can Benefit?

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April 28, 2021

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Looking to get a mortgage as an older borrower and want to know how a Retirement Interest Only (RIO) Mortgage could be right for you? We are here to help you make that decision.

What is a RIO Mortgage?

Retirement-interest only mortgages (RIOs) are a quite new when you consider how long mortgages have been around. They are designed to assist older borrowers who may otherwise struggle to secure a standard residential mortgage. Very similar to interest only-mortgages, you only have to pay back the interest each month, not any of the loan itself. However unlike standard interest-only mortgages you only repay the loan when you sell your property, move into residential care or die, majority of RIO Mortgages don’t have a set term. You also only have to prove you can afford the interest, unlike a standard residential mortgage.

They would be useful for older borrowers who are coming to the end of their standard interest only mortgage and are not able to meet the repayment monthly payments or obtain another interest only mortgage.

If you think an RIO mortgage could be right for you or you would like more information, give one of our expert brokers a call on 01233 512170.

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